TY - JOUR

T1 - Preferences for Redistribution and Perception of Fairness

T2 - an Experimental Study

AU - Durante, Ruben

AU - Putterman, Louis

AU - van der Weele, Joël

PY - 2014

Y1 - 2014

N2 - We conduct a laboratory experiment to study how demand for redistribution of income depends on self‐interest, insurance motives, and social concerns relating to inequality and efficiency. Our choice environments feature large groups of subjects and real‐world framing, and differ with respect to the source of inequality (earned or arbitrary), the cost of taxation to the decision maker, the dead‐weight loss of taxation, uncertainty about own pretax income, and whether the decision maker is affected by redistribution. We estimate utility weights for the different sources of demand for redistribution, with the potential to inform modeling in macroeconomics and political economy

AB - We conduct a laboratory experiment to study how demand for redistribution of income depends on self‐interest, insurance motives, and social concerns relating to inequality and efficiency. Our choice environments feature large groups of subjects and real‐world framing, and differ with respect to the source of inequality (earned or arbitrary), the cost of taxation to the decision maker, the dead‐weight loss of taxation, uncertainty about own pretax income, and whether the decision maker is affected by redistribution. We estimate utility weights for the different sources of demand for redistribution, with the potential to inform modeling in macroeconomics and political economy

U2 - 10.1111/jeea.12082

DO - 10.1111/jeea.12082

M3 - Journal article

VL - 12

SP - 1059

EP - 1086

JO - Journal of the European Economic Association

JF - Journal of the European Economic Association

SN - 1542-4766

IS - 4

ER -